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Energy Efficiency Policy Measures as a Tool to Reduce GHG Emissions in MENA (Opportunities to reduce GHG emissions through Energy Efficient Policy Measures) By: Eaman Aman* INTRODUCTION Recently the issue of energy isn’t limited only to generation, but rather it extends to encompass the notion of how we consume energy (and reflection here is on energy efficiency and carbon emissions). Middle East and North Africa (“MENA”), region are facing an increasing challenge in responding to their growing greenhouse gases (“GHG”) emissions footprint. Qatar, Kuwait, UAE, Bahrain and Saudi Arabia (MENA’s energy resource‐rich countries) are figured among the world’s top‐10 per capita carbon emitters1. Hence, Without a change in energy policies, MENA‘s energy‐related GHG emissions will continue to grow. Therefore, adapting an energy efficiency‐based policy on the supply‐side and demand‐side is an important component in reducing GHG emissions and combating climate change. My Paper proceeds on the following sections. First, section, provides a background on the MENA energy prospects. Second, Section discusses the drivers behind increasing GHG levels in MENA. Third section, discusses the importance of energy efficiency policy to MENA. Fourth section, proposes a policy option through “energy efficiency measures” to curb GHG emissions. The last section is the conclusion and sum‐up recommendations for where MENA ought to be to curb their high GHG emission levels. BACKGROUND This section briefly covers some issues such as, statistics about MENA’s energy production and rising carbon emissions level on a regional context. Oil‐and‐gas production is the backbone for MENA’s thriving economies. The MENAs’ region especially resource‐rich countries including Gulf Cooperation Council countries (“GCC”), are characterized with plentiful reserves and high production of prime energy resources (oil and gas). Resource‐rich countries have the largest 1
http://www.ecomena.org/tag/carbon‐footprint‐in‐the‐middle‐east/ (last visited on 8/4/2015). proven natural resources globally, with 57% of the world’s oil and 41% of its natural gas2. The region share in global oil production will increase from 35% now to 44% in 20303 (clean energy investment needed to meet projected demand). MENA countries together have 840 billion barrels of proven crude oil reserves and 80 trillion cubic meters of proven gas reserves 4 . According to IEA, MENA region energy intensity demand (which contributes to GHG emissions) is driven by population (345.4 million in 20135), economic growth and relying on heavy industries with the presence of generous energy administrative price scheme (electricity/gasoline). In MENA, high growth in energy demand is driven across the end‐use sectors like: in the residential sector through increased use of air conditioning and cooling units; in the transportation sector through rising private vehicle ownership; and in the industrial sector from hydrocarbon production and refining, and desalination plants.6 KEY ENERGY CONSUMPTION DRIVERS THAT CONTRIBUTE TO GHG EMISSIONS: A central reason for increased GHG emissions is the low efficiency of resource consumption.7 The region has the lowest energy efficiency record compared to any region in the world8. In MENA, generates a $4.6 of GDP per unit of energy consumed9 , which score poorly in comparison with efficient economies like in EU it creates $8.1 of GDP per unit of energy consumed10. The low‐
efficiency of resource consumption lead to high energy consumption levels which (it is the main contributor to GHG emissions) are geared by three main drivers. First driver, is the population growth, which places a pressure on governments to balance their development needs (economic well‐being) and the challenge to combat GHG. Second driver is, energy consumption patterns, 2
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/0,,contentMDK:22307440~pagePK:146736~
piPK:146830~theSitePK:256299,00.html (last visited on 5/4/201) 3
http://www.iea.org/newsroomandevents/pressreleases/2005/november/iea‐projects‐growth‐in‐middle‐east‐
and‐north‐africa‐oil‐and‐natural‐gas‐sectors‐through‐2030.html (last visited on 5/4/2015) 4
https://www.iea.org/publications/freepublications/publication/WEO2011_WEB.pdf (last visited on 5/4/2015) 5
http://data.worldbank.org/region/MNA (last visited on 5/4/201) 6
http://www.chathamhouse.org/sites/files/chathamhouse/public/Research/Energy,%20Environment%20and%20D
evelopment/1211pr_lahn_stevens.pdf (last visited on 5/4/20015) 7
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 5/4l2015) 8
https://jime.ieej.or.jp/htm/english/2012/0525.htm (last visited on 12/4/2015) 9
http://www.greenprophet.com/2011/09/subsides‐jeopardize‐renewable/ (last visited on 12/4/2015) 10
Ibid MENA’s resource‐rich countries has the highest per capita consumption rates. Third driver is the heavily reliance on fossil fuels as a prime energy to generate electricity. Example for the second driver, In MENA, variation in energy use and emissions appear in correspondent to patterns of consumption.11 Saudi Arabia is a prime example as it represent 7% from the total region’s population and ironically responsible for 28% of region’s emissions. Also surprisingly that Saudi Arabia; with a population around 27 million 12 ; produces more carbon emissions more than populous and industrialized countries such as France of (62 million) and Brazil (194 million).13 On contrary, Egypt, which is the most populous region in MENA represents about (25%) of the region’s population is responsible for a 13% of the region’s carbon emissions (figure no.1).14 Examples for the third driver, electricity generation in the region is mainly fueled by hydrocarbons (contribute to the rising levels of GHG emissions). FIGURE 1AN INDIVIDUAL COUNTRIES SHARE OF TOTAL CARBON EMISSIONS PRODUCED IN MENA /SOURE: CARBOUN 11
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 5/4/2015) 12
https://www.cia.gov/library/publications/the‐world‐factbook/geos/sa.html (last visited on 5/4/2015) 13
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 5/4/2015) 14
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 5/4/2015) WHY DOES ENERGY EFFICIENCY MATTER FOR MENA? The urgent need to increase energy efficiency is a proxy for the decline in energy (use) intensity and significantly reduces atmospheric GHG emissions. MENA governments need to create a policy environment that rewards energy‐efficient choices on domestic front and international front.  ON THE DOMESTIC FRONT: MENA needs to meet its growing energy needs in a sustainable path. Accordingly, embracing an energy efficient policy measures is a winning strategy that meets energy needs and cut on inefficiency that contribute to GHG emissions levels. As shown in the figure (no.2), Qatar is the leading per capita carbon emitter in the world. Carbon emissions in the MENA region have more than doubled over the past three decades, with the rich‐resource MENA at forefront.15 FIGURE 2 MENA CARBON EMISSIONS PER CAPITA/SOURCE:CARBOUN MENA is facing a significant energy efficiency concern related to the magnitude of per‐capita electricity demand growth in electricity consumption (that’s why we need to improve the efficiency of this sector). This is due to several reasons such as, region’s hot climate conditions and the increasing need to generate electricity to keep cool. Also, availability of potable water 15
http://www.carboun.com/energy/a‐visual‐guide‐to‐energy‐and‐carbon‐emissions‐in‐the‐arab‐world‐
infographic/ (last visited on 5/4/2015). (water scarcity) is also contributes to carbon emissions. MENA region shares a general lack of sufficient renewable water resources within their borders, and have to depend on other non‐
renewable water sources in order to satisfy the needs of their growing populations16. Especially in Saudi Arabia and the United Arab Emirate, these countries adopted desalination (which is a highly energy intensive) of sea water as a solution to their water desalination challenges17. But given the energy‐intensive nature of the desalination process, and given that these countries rely on Hydrocarbon fuel‐based as an energy source for operating desalination plants, this has only added to their energy demand and subsequently their carbon emissions. For example, the emirate of Abu Dhabi uses more than half of its domestic energy‐use in desalination 18. Also, generous administrative price and favorable tariff rates to end‐users (residential‐commercial‐
industrial as mentioned desalination and petrochemicals and fertilizers industries) encourages both wasteful consumption and increasing GHG emissions). The argument here is contrary to what is considered as a social welfare mechanism, these energy subsidies now act as a catalyst for increased consumption, disconnecting consumers from the cost and impact of their growing consumption and impacts on air quality19. Likewise, gasoline administrative price too, lead to a lack of viable public transportation network and contribute to atmospheric GHG emission. This can also be argued that subsidies on gasoline have encouraged a reliance on the use of private vehicles and prevented the development of viable public transportation networks. Moreover, the administrative price disincentives the development of renewable resources and thus worsen the region’s plans to diversify the energy supply away from fossil fuels (intensifying the energy security concern). In MENA region, electricity ranked well higher than any individual sector accounts for 41% and transportation, which comes second accounts for 25% of the region’s total carbon emissions.20 
ON INTERNATIONAL FRONT: Given their hydrocarbon resources‐centered economies, MENA’s resource rich countries have a stake in the int’l efforts to smooth the gradual transition to a sustainable energy future. MENA is very vulnerable against the impacts of climate change agreements. For example, in 2011, Durban platform brought the developing countries (MENA resource‐rich countries) to accept a legally 16
http://www.groundwatergovernance.org/fileadmin/user_upload/groundwatergovernance/docs/regional_diagnos
tic_reports/GWG_Arab_Region_RegionalDiagnosis_Report.pdf (last visited on 12/4/2015) 17
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 12/4/2015). 18
http://www.carboun.com/energy/two‐trends‐of‐energy‐and‐emissions‐in‐the‐arab‐world/ (last visited on 9/5/2015) 19
http://www.un.org/en/ecosoc/docs/pdfs/fina_08‐45773.pdf (last visited on 9/5/2015) 20
http://www.carboun.com/energy/carbon‐footprint‐of‐electricity‐in‐the‐middle‐east/ (last visited on 5/4/2015) binding global carbon limitation agreement (goal is to cut emissions by 2020). Some argue that this put the region under a mounting pressure to cut their emissions. Resource‐rich MENA are heavily relying on oil to survive their economies. Consequently, any restrictions on oil produce and export will hurt these single‐resource economies. Others argue that this is a chance for the region to stimulus the investment in clean technologies and improve its efficiency standards. Int’l bodies and institutions advise and recommends that GCC countries to consider (‘Carbon Capture and Sequestration”) CCS under clean development mechanism (CDM) as a viable choice to mitigate GHG emissions. Such as CCS technology that involves the capture of carbon dioxide from power plants and large industrial sources, and then inject it into deep underground geological formations21. Recently, the MEN resource rich countries have embarked on notable projects and policies reform across different affected sectors. These efforts lie explicitly or implicitly to mitigate impacts of GHG on their economies and development priorities. This will strengthen the resource‐rich MENA’s role in the fight against climate change. MENA has a great opportunity to act now to improve its energy efficiency and achieve GHG emission reductions. MENA governments should put energy efficiency at the top of energy policy agenda with a committed goal to reduce GHG emissions through energy efficiency programs. For example, Obama’s administration has focused on the importance of energy efficiency investment programs as an engine of and environment conservation in the United States. According to President Obama, “energy efficiency is one of the fastest, easiest, and cheapest way to make our economy stronger and cleaner.” (figure no.3) FIGURE 3MENA CARBON EMISSIONS LEVELS COMPARED WITH THE WORLD/ SOURCE: CARBOUN 21
http://www.epa.gov/climatechange/ccs/ (last visited on 6/4/2015) OPPORTUNITIES TO REDUCE GHG EMISSIONS THROUGH ENERGY EFFICIENCY POLICY: (PUSH POLICIES) Across MENA there is a pressing need to expand the energy portfolio away from classic fuels to alternatives, at the same time operating its existing industry efficiently to curb GHG emissions and mitigate climate change. MENA is not only aware of high carbon intensity harmful consequences on ecological balance, but also it is a present threat to its energy security (continued consumption rate will weaken especially; the GCC position in efforts to combat GHG). Therefore, energy producing‐countries “rich‐resource MENA” embarked on ambitious plans to invest in nuclear and renewable energy to reduce GHG through a supportive energy fuel choice. There is a wide array of measures on both supply side and demand side, to boost MENA energy efficiency levels via promoting stringent environmental, energy saving policies to combat GHG and mitigate climate change. Formal energy efficiency programs and voluntary measures combined will help the region to maintain its economic strength in the region. As the int’l world is marching towards securing commitments to mitigate and reduce the atmospheric GHG emissions, MENA is no difference. Countries believe that energy efficiency improvements are a proxy to low‐carbon intensity economy. So, there is a great potential for MENA region to curb it’s emissions through designing, improving, and implementing energy efficiency and GHG reduction measures22. This is through creating a robust regulatory and institutionalized framework to achieve a reduction in GHG through bundle of non‐market based and market‐based instruments. 
NON‐MARKET BASED: They are regulations focus on preventing environmental externalities this is done through auditing and monitoring/inspection program. Also, including performance‐oriented regulations to limit air pollutants. 23 This is can be achieved through various policy tools on either demand‐
side or supply side. On the demand‐side, information‐based instrument (information campaigns/knowledge‐based centers/labelling &training programs). Also, minimum energy‐
performance standards for appliances, equipment and vehicles (CAFÉ standards). And regulatory‐based instruments such as; building codes, insulation and energy auditing. On the supply side, across the MENA region, there is a growing interest in diversifying fuel supply (to meet electricity generation needs) through nuclear energy/ renewable energy, such as solar, wind, geothermal and biomass, which could enable regional countries to adopt a green economy and cut down on fossil fuel consumption that contribute to GHG emissions24. 
MARKET‐BASED: 22
http://www.ecomena.org/tag/ghg‐emissions/ (last visited on 8/4/2015) 23
http://www.eoearth.org/view/article/151316/ (last visited on 4/4/2015). 24
http://www.solarthermalworld.org/sites/gstec/files/MENA%20Region.pdf (last visited on 12/4/2015). In environmental law and policy, market‐based instruments (MBIs) (economic instrument)are either correcting market distortion due to administrative price or defined as a policy instrument that use market externalities (GHG) into the cost of the energy (price to provide incentives for polluters to reduce or eliminate GHG emissions)25. This can be done via a carbon tax or building regional cap‐and‐trade platform that places a price on the externality (here an environmental one)26. Market based instruments (grants, rebates, tax‐exemption,) would provide incentives to invest in efficient technologies to reduce GHG emissions and mitigate the harsh contours of the int’l climate change agreement. CONCLUSION: The MENA region has the highest per capita carbon footprint in the world which can be offset by mass deployment of energy‐efficient policies27. An improved energy efficiency plan for MENA region (in both supply and use) will reverse the current high levels of GHG and help MENA to follow a low‐carbon, oriented energy trajectory. This goal will grant MENA countries the impetus to recycle the savings from energy efficiency measures in order to develop a coherent solutions to balance the domestic needs in a sustainable model. *Eaman Abdallah Aman is an Energy policy‐oriented researcher. She has rich knowledge on issues related to energy security, nuclear energy, renewable energy, climate‐change, energy efficiency, energy conservation and sustainable development. Her expertise encompass int’l petroleum transactions, petroleum contracts and agreements, int’l petroleum investment operations, energy policy and economics of natural resources law and policy. She can be reached via email address: [email protected] or [email protected] Mobile# 0590485311 25
http://yosemite.epa.gov/EE%5Cepa%5Ceed.nsf/webpages/EconomicIncentives.html (last visited on 6/4/2015) 26
http://www.ksg.harvard.edu/fs/rstavins/Papers/Market%20Based%20Environmental%20Policies.pdf (last visited on 6/4/2015). 27
http://www.ecomena.org/energy‐mena/ (last visited on 8/4/2015).